The Contemporary Development of Serbia-China and Serbia-Russia Relations: Is This the Opportune Moment for Economic Cooperation Expansion?

Abstract

Considering the increased presence of China and Russia at all levels, including the deepening economic cooperation between the two countries and Serbia, the main purpose of this thesis is to examine the dynamics and structure of trade in goods and foreign direct investment between Serbia and the Russian Federation and Serbia and China. The analysis was conducted on the basis of secondary data from the National Bank of the Republic of Serbia and the China Global Investments Tracker (the data on investments), as well as the Trade Map database of the International Trade Centre (the data on trade in goods). The period covered by this research is from 2013 to 2022 (including 2023, when data was available). The research results show that the intensification of economic relations has occurred mainly in the last five years, when investments between Serbia and China, as well as Serbia and Russia, have increased, simultaneously boosting bilateral trade development. China, however, has emerged as Serbia's more significant economic partner than Russia. China became a leader in foreign direct investment for Serbia and remained the second-most important trading partner. Despite the growing trends, Serbia's economic relations with both sides remain far below their potential and face particular challenges, such as severely under-diversified Serbian exports, dependence on Russian energy imports, a widening trade deficit, favouritism towards certain sectors and industries in investments, nontransparent procedures and regulations, etc.